Review of 3 offers on La Fiesta revitalization begins

Acting governor Eloy S. Inos said a team has been formed to review three proposals submitted in connection with a multimillion revitalization of the former La Fiesta Mall in San Roque.

He said there are three proposals, not two as the administration earlier said.

“I hope these three proposals came in on time…Work is currently underway to review the proposals,” Inos told Saipan Tribune in an interview at the opening ceremony for the 30th Annual Flame Tree Arts Festival Saturday morning.

Acting Finance secretary Larrisa Larson also said last week there were three entities who responded to the request for proposals to revitalize La Fiesta.

Inos said the three were Island Ventures, Pacific Amusement in partnership with a Nova Scotia, Canada-based firm, and the United Micronesia Development Association Inc., which owns the now-closed 313-room The Palms Resort across the road from La Fiesta.

Island Ventures is also interested in building a multi-million hotel near La Fiesta. The Department of Public Lands issued a one-year temporary authorization to Island Ventures LLC to enter the premises it wants to lease to build its project in an area previously leased and later abandoned by by Flame Sako for a planned $80-million hotel.

Bridge Capital LLC, which earlier told the media that they will respond to the La Fiesta RFP, did not want to comment on the issue.

Inos said because he has not seen the proposals submitted, there’s no telling whether Bridge Capital is partnering with any of the three proposers.

Inos said the review team will consist of the Finance secretary and representatives from the Office of the Attorney General, the Department of Commerce, and the Division of Revenue and Taxation.

The review, he said, could take two weeks.

Initial estimates are that La Fiesta Mall renovations will cost at least $5 million.

The CNMI has a leasehold interest in the La Fiesta Mall, which has been empty for several years and suffered serious deterioration due to vandalism and neglect.

The government has been paying some $200,000 annually for the lease of the property, yet it has not earned a single cent from it since 2004. Rather than let the facility deteriorate further, the government wants to revitalize it, and this was the reason why the government sought proposals from interested parties.

The last time Finance issued an RFP in 2009, the negotiation with the lone proposer, Bridge Capital, bogged down.

Finance issued another RFP, but this time specifically stating that besides retail stores and other tourism-related activities, the La Fiesta Mall revitalization project requires the construction of a gaming area for at least 200 video lottery terminals as stated in the project’s scope of work.

“There are now three [proposers] because I think this RFP had allowed or had stated that it would consider proposals for the operation of video lottery terminals and that kind of attracted some of these proposers,” Inos said.

The Department of Finance adopted regulations to allow the operation of video lottery terminals.

Finance had said that net gaming funds from the video lottery operations will be used solely for the payment of obligations to the NMI Retirement Fund.